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Ratios

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Ratios

  • This topic has 4 replies, 2 voices, and was last updated 22 hours ago by mrjonbain.
Viewing 5 posts - 1 through 5 (of 5 total)
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  • June 12, 2025 at 10:07 am #717897
    harsha..
    Participant
    • Topics: 5
    • Replies: 9
    • ☆

    Which four of the following statements about accounting ratios are correct?
    1. They are useful when comparing a business results from one year to the next
    2. Gearing will indicate how risky a business is
    3. Interest cover will give an investor information about whether or not a dividend will be paid
    4. If there is an increase in any calculated accounting ratio, it is seen as favourable
    5. They help the user of financial information to focus attention on significant issues
    6. They can provide information about the profitability, liquidity, efficiency and position of the company
    7.Ratios can be affected by a business choice of accounting policies
    8.They provide all the information needed for interpreting company accounts

    Sir , what is your view on this ,as to me five statements seems to be correct (1,2,5,6,7)

    June 12, 2025 at 10:54 am #717899
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2448
    • ☆☆☆☆☆

    If you want to ask the tutor something directly, please use the ask the tutor forum.

    June 12, 2025 at 10:55 am #717900
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2448
    • ☆☆☆☆☆

    https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-fa/

    June 12, 2025 at 11:18 am #717901
    harsha..
    Participant
    • Topics: 5
    • Replies: 9
    • ☆

    Ok , Thanks!

    June 12, 2025 at 11:43 am #717904
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2448
    • ☆☆☆☆☆

    You are welcome.

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